Connecticut recently updated the CT Withholding Certificate for Pension or Annuity Payments (Form CT-W4P). This form is used to report withholding on taxable pension and annuity distributions that payers are required to withhold on.

The form has been completely overhauled due to a change in the law requiring withholding on pension and annuity distributions. House Bill 7312 (Public Act No. 17-147) amended withholding regulations in Connecticut to require payers of said distributions to withhold on pension and annuity payments and report that data to the CT Department of Revenue Services. This requirement takes effect January 1, 2018, and is effective for TY 2017 reporting.

Form CT-W4P now includes withholding codes based on several categories of potential payees: “married filing jointly”, “qualifying widow(er) with dependent child”, “married filing separately”, “single”, and “head of household”.

About the Author

Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.